Military Expenditure in China, 1989-2022

China's military expenditure as a percentage of GDP has remained relatively steady since 1989, with minor fluctuations reflecting shifts in economic priorities and defense strategies. Spending hovered around 2% during the early 1990s but gradually declined to 1.7% by the late 1990s, aligning with China's focus on economic reforms and global integration. This trend highlighted Beijing's strategic balancing act between modernizing its military and fostering rapid economic growth.

From 2000 onward, defense spending stabilized at approximately 1.8% of GDP, with occasional peaks, such as 2% in 2001. This period marked significant investments in advanced technologies, maritime capabilities, and regional defense strategies. By 2022, military expenditure settled at 1.6%, reflecting China’s ongoing efforts to modernize its forces while maintaining fiscal discipline.